View: https://youtube.com/shorts/e5ExmpzgJjY?si=lQDozZKoS3iCURcN
View: https://youtube.com/shorts/SPJQ9WXzBOU?si=pMQUhIZNGJUfF2p5
Consider this case of real estate here where on the outskirts of Wuhan a Tier 2 city a 3 Bedroom Hall Kitchen apartment costed 225000 USD to buy but not rents for 250 USD per month making it 3000 USD per annum.
Now that's ridiculous. Standards for rent to purchase prices the world over is the rental rates have to be 3% or more per annum of the purchase price which in the above case means for a purchase price of 225000 USD , the annual rent should've been at least 6750 USD BUT is actually 3000 USD per annum which is HALF of the global standards which in turn means that property is twice over valued .
Why did this happen ? Because of the CCP need for growth & not enough avenues for investment , people invested in property & gold since people don't trust the stock market & the banks don't give you good returns on savings. Well now the real estate bubble has collapsed & people aren't getting a return on their investment.
Infact in this very case I doubt the buyer of this property will get even a third of what he / she invested into it. Just to put things into perspective the purchase price of the property depicted there was 225000 & the property is on the outskirts of Wuhan with no connectivity meaning no public transportation.
In the present circumstances , the landlord would be lucky to get 75000 USD on that property. Plus the property belongs to the state which they've technically leased out for 70 years to the ordinary citizen. Nobody knows what happens once that time period is up.
This is what happens when you grow too fast. You take short cuts make elementary mistakes & in the end all those sins & mistakes catch up with you . Remember that story of the hare & the tortoise. Well China's the hare here. No questions about it. You're ahead in the race by miles. Will you win it ? I don't think so.